In which type of federalism are funds typically provided with specific requirements attached to their use?

Categorical grants are a type of federal funding that comes with specific requirements and conditions attached to their use. This means that when the federal government provides these grants to states or local governments, it specifies how the funds must be spent, often targeting them for a particular purpose such as health care, education, or infrastructure projects.

This targeted approach allows the federal government to ensure that funds are utilized in ways that align with national priorities and policy goals. The stipulations attached to categorical grants often require recipients to follow certain guidelines or meet criteria, emphasizing accountability and intended use of the funds.

In contrast, block grants provide funding with fewer restrictions, allowing states greater flexibility in how to allocate the money. Cooperative federalism involves collaboration between federal and state governments but does not directly pertain to the nature of funding itself, and discretionary grants are typically intended for flexible use but often determined by specific governmental agencies, thus lacking the precise targeting of categorical grants.